The Al Jaber Energy Services-Technip Germany alliance has been selected as preferred bidder for the transmission package of the Fujairah desalination, power plant and pipeline project, the UAE Offsets Group (UOG) said yesterday. The contract could be awarded in the next two weeks if final negotiations with the chosen bidder prove successful.

The package involves the construction of a 185-kilometre water transmission pipeline to Al Ain, a 16-kilometre link to Al Dhaid, pumping stations, water storage tanks and associated facilities.

The project was initiated to meet the rising demand for water in Al Ain and the growing power and water requirements in the Northern Emirates. Demand for power in that region, which currently faces severe power shortages, especially during summer, is rising 10-15 per cent annually.

The other bidders were Doosan Heavy Industries and Construction Co of South Korea (Doosan), Pan Arab Enterprises for Pipeline Construction with India's Larsen & Toubro, and Athens-based Consolidated Contractors International with Saipem and Snamprogetti.

The winning bid was chosen on the basis of its better engineering and long-term commercial options, UOG said. The Union Water and Electricity Co (UWEC) will build, operate and manage the project.

Doosan was chosen for the desalination and power plant package of the project in late June. Under the Dh2.95 billion contract, it will build a 100 million gallon per day desalination plant and a 656-megawatt power unit.

Of the power generated, 120 megawatts will be used by the desalination plant, 36 megawatts will go for the transmission system and the rest will be supplied to the Northern Emirates and the upcoming national grid of the Federal Electricity and Water Authority (Fewa).

An UOG-Fewa committee has been set up to study the commercial and technical issues and work on ways to link the new plant with the national grid and the Northern Emirates. The National Bank of Abu Dhabi is financial advisor to the project and will arrange the financing package.